Investing in gold is becoming popular, and thanks to Bitcoin technology, there are simple ways to do it.
In times of economic uncertainty and geopolitical tensions, gold is regaining prominence as a safe haven. Throughout history, the precious metal has been a reliable reserve against inflation, devaluation of fiat currencies, and crises of the traditional financial system.
Currently, in the midst of the rise of decentralized technologies, gold is also adapting to the new times: it is no longer necessary to buy physical bars or pay for custody. It is possible to acquire tokenized digital gold, backed by physical gold, securely and with great accessibility.
One of the main representatives of tokenized gold is PAX Gold (PAXG), issued by the company Paxos. As CriptoNoticias has explained in some publications, each PAXG token represents ownership of one troy ounce of physical gold stored in vaults in London.
Since it is based on the Ethereum network, the tokenized gold by Paxos combines the financial strength of gold with the flexibility and liquidity of the cryptocurrency ecosystem. PAXG can not only be purchased as an investment but also stored in wallets compatible with the Ethereum network and used as collateral on multiple DeFi platforms.
In this tutorial, we will show you step by step how to buy PAXG easily on Binance, the largest cryptocurrency exchange in the world. Whether you want to diversify your portfolio, protect yourself against inflation, or simply experiment with assets backed by real goods, this guide will allow you to access tokenized gold safely and efficiently.
Step 1: create an account on Binance
The first step to buy tokenized gold is to register on Binance. To do this, go to the official Binance page and click on 'Register'.
You will need to complete a form with your personal data and follow the identity verification process (KYC), which is mandatory to operate. Once your account is created and verified, you can start using the platform.
Step 2: fund the account with cryptocurrencies
With the account active, it's time to deposit funds. Binance offers several funding alternatives, but the most used are bitcoin (BTC) and stablecoins like USDT (Tether). You can send cryptocurrencies from another wallet or exchange to your Binance account, selecting the asset and copying the corresponding deposit address. You can also buy cryptocurrencies within Binance if that option is enabled in your country. Once the funds are credited, you can use them to acquire PAXG.
Since the process of buying or transferring USDT or other tokens exceeds the objectives of this tutorial (focused on investing in PAXG), we provide the reader with other CriptoNoticias tutorials that can guide them in those particular tasks:
Step 3: convert cryptocurrencies to PAXG
With available balance, go to the 'Wallets' section of Binance and choose 'Spot'. There, look for the asset you want to convert (for example, USDT or BTC) and click on 'Convert'.
A simple conversion screen will open. In the source field, select the token you have; in the destination field, choose PAXG. Indicate the amount you wish to convert and confirm the operation by clicking on 'Convert'.
Then, Binance will show you how your conversion looks according to the current exchange rate. If you agree, click on 'Confirm'.
If you did all that, in a few seconds, the PAXG tokens will appear in your spot wallet.
If you wish to exchange PAXG for USDT or another token, the process is the same, but selecting PAXG as the currency to convert and USDT (or whichever token it may be) as the currency to receive.
However, you must remember that although PAXG is backed by physical gold, its ownership remains digital and depends on trust in the issuer (that is, in the company Paxos).
As always, it is recommended to conduct your own research and consider additional safeguarding measures, such as using self-custody wallets based on each investor's goals.